How can an RD calculator help you?
A Recurring Deposit (RD) is an ongoing investment where tracking returns can be complex due to quarterly compounding of interest and various involved variables. RD calculator simplifies the process, allowing investors to determine the exact returns on their deposits easily.
The only manual task for the investors is considering TDS deduction, which varies among financial institutions and isn't factored into RD calculators.
How to use the Bajaj Finance RD Calculator online?
Utilising our RD Calculator is a simple and user-friendly procedure. To help you get started, here's a step-by-step guide:
Step 1: Input your "Monthly Investment Amount (in rupees)."
Step 2: Specify the "Time Period” (in months).
Step 3: Provide the "Rate of Interest (in %)" offered by your RD provider.
Within moments, you'll receive instant results, displaying the total investment value and the accrued interest amount.
A formula to determine RD maturity
The calculation of the RD maturity amount involves three key variables, which are processed by an RD account calculator using a standard formula to determine the precise maturity amount.
The formula for RD maturity is
A = P*(1+R/N)^(Nt)
Where:
A = Maturity Amount
P = Monthly RD Instalment
N = Compounding Frequency (number of quarters)
R = RD Interest Rate as a percentage
T = Tenure
This formula serves as the universal method for calculating RD maturity amounts, irrespective of the invested amount or the investment duration. All that's required is to input the specific values.
For example, let us calculate the maturity amount of an RD considering the monthly deposit amount of Rs. 7,000 and an interest rate of 8.50%.
Using the above mentioned formula, here A will be the “Maturity Amount”, P will be “Monthly RD Instalment” (Rs. 7,000), N will be “Compounding Frequency” (number of quarters), R will be “RD Interest Rate” (8.50% or 0.085) and T will be “Tenure” (1 year, equivalent to 4 quarters).
Hence
A = P*(1+R/N)^(Nt)
= 7000*(1+0.085/4)^(4*12/12)
= Rs. 7,671.40
A = P*(1+R/N)^(Nt)
= 7000*(1+0.085/4)^(4*11/12)
= Rs. 7,521.88
A = = P*(1+R/N)^(Nt)
= 7000*(1+0.085/4)^(4*1/12)
= Rs. 7,049.37
For this specific investment scenario, summing up this series, the total maturity value, i.e., A, equals Rs 85,947.42.
Manually solving such equations can be quite challenging. A Recurring Deposit Calculator swiftly provides you with the exact figure in seconds.
Advantages of using an RD maturity calculator
An RD calculator offers several advantages:
- Precise financial planning: Investors can plan their future finances with clarity, knowing the exact amount their investment will accumulate.
- Convenience: These calculators are user-friendly and save valuable time that investors can use more productively.
- Accuracy: They provide highly accurate estimates, which are essential for prudent financial planning.
Invest with confidence and foresight using our RD calculator.